A Regression Analysis of Company Profits and the Amount of Money

question 44

Multiple Choice

A regression analysis of company profits and the amount of money the company spent on
Advertising found $r ^ { 2 } = 0.72$
0) 72 . Which of these is true?
I. This model can correctly predict the profit for 72% of companies.
II. On average, about 72% of a company's profit results from advertising.
III. On average, companies spend about 72% of their profits on advertising.

• A) I only
• B) none of these
• C) I and III
• D) II only
• E) III only

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Definitions:

Compound

Substance having two or more different elements in a fixed ratio.

Molecules

Groups of two or more atoms held together by chemical bonds.

Nucleus

A membrane-bound organelle found in eukaryotic cells that contains most of the cell's genetic material.

Neutrons

Neutral, subatomic particles found in the nucleus of an atom, contributing to the atom's mass but not its charge.